Paxos’ 300 trillion fat finger raises concerns over PYUSD integrity
Whale alerts began to blare across the cryptosphere yesterday after Paxos minted 300 trillion of PayPal’s stablecoin, PYUSD, valued at over double global GDP. The tokens were burned 22 minutes later, but many were left worried by Paxos’ ability to create such an unfeasible quantity of tokens out of thin air. The official response did little to address concerns. At 3:12 PM EST, Paxos mistakenly minted excess PYUSD as part of an internal transfer. Paxos immediately identified the error and burned the excess PYUSD. This was an internal technical error. There is no security breach. Customer funds are safe. We have addressed the root… — Paxos (@Paxos) October 15, 2025 Read more: PayPal and Ripple stablecoins still sub-1% despite ‘stablecoin gold rush’ Responses centered on the lack of explanation and the apparent failure to compare any mint instructions against a proof of reserves. Paxos claims to “have addressed the root cause,” but has yet to provid...